FICO Announces Earnings of $0.35 per Share for Fourth Quarter 2009
http://www.businesswire.com/news/home/20091104006361/en
Bookings for fourth quarter 2009 of $85.9 million vs. $71.2 million in prior
year
MINNEAPOLIS--(Business Wire)--
FICO (NYSE:FICO), the leading provider of analytics and decision management
technology, today announced financial results for its fourth fiscal quarter
ended September 30, 2009.
Fourth Quarter Fiscal 2009 Results
Net income for the fourth quarter of fiscal 2009 totaled $17.1 million, or $0.35
per share, versus $23.8 million, or $0.49 per share, reported in the prior year
period, which included $0.07 per share of net favorable adjustments related to
income tax adjustments and restructuring costs.
"Unwavering focus on our core strategy, combined with our ongoing expense
discipline, has yielded strong operating leverage for FICO over the past 12
months," said Mark Greene, chief executive officer. "We`ve used that leverage to
bring to market new Decision Management products that our customers urgently
need to compete effectively. Our approach has led to consistent earnings, and
now, a significant increase in bookings during the fourth quarter. And thanks to
our strong balance sheet and substantial free cash flow, we remain in a position
to invest in products whose value is prized by our clients - the key to
meaningful revenue growth for FICO over the longer term."
Fourth Quarter Fiscal 2009 Revenue
The company reported fourth quarter revenues of $151.9 million in fiscal 2009
versus $178.2 million reported in the prior year period. Revenues for fourth
quarter fiscal 2009 across each of the company`s four operating segments were as
follows:
* Strategy Machine Solutions revenues were $82.9 million in the fourth quarter
compared to $94.5 million in the prior year quarter, or a decrease of 12%,
primarily due to the divestiture of our telecom product lines. Fourth quarter
2008 included $5.9 million of revenue associated with the divested telecom
product lines. The remaining decrease was due to declines in our consumer
solutions and customer management solutions, which were partially offset by an
increase in our fraud solutions and marketing solutions.
* Scoring Solutions revenues were $31.8 million in the fourth quarter compared
to $37.3 million in the prior year quarter, or a decrease of 15%, primarily due
to a decrease in revenues derived from our credit bureau risk scores.
* Professional Services revenues were $25.0 million in the fourth quarter
compared to $33.2 million in the prior year quarter, or a decrease of 25%,
primarily due to the general decline in license sales, resulting in a
corresponding decline in implementation services. This decline is also the
result of a practice of discontinuing certain lower margin consulting service
engagements that was started in early fiscal 2009.
* Analytic Software Tools revenues decreased to $12.2 million in the fourth
quarter compared to $13.2 million in the prior year quarter, or a decrease of
8%, primarily due to decreases associated with the sale of the Blaze Advisor
product.
Bookings
The bookings for the fourth quarter were $85.9 million compared to $71.2 million
in the same period last year. The company defines a "new booking" as estimated
future contractual revenues, including agreements with perpetual, multi-year and
annual terms. Management regards the volume of new bookings achieved as one
indicator of future revenues, but they are not comparable to, nor should they be
substituted for, an analysis of the company`s revenues.
Balance Sheet and Cash Flow
Cash and cash equivalents, and investments were $390.3 million at September 30,
2009, as compared to $271.2 million at September 30, 2008. Significant changes
in cash and cash equivalents from September 30, 2008 include cash provided by
operations of $151.6 million, $4.0 million received from the sale of product
line assets, and $3.3 million received from the exercise of stock options and
stock issued under an employee stock purchase plan. Cash used during the year
includes $18.5 million to repurchase common stock, $14.0 million related to
purchases of property and equipment and $3.9 million of dividends paid.
Outlook
In light of the continuing uncertainty in the global financial markets and the
limited visibility into our clients` spending intentions, the company is not
providing specific quarterly guidance. However, the company expects to grow
year-over-year GAAP earnings per share by a high single-digit percentage in
fiscal 2010 compared to fiscal 2009, with relatively flat results in the first
half of the year compared to the prior year, and stronger performance in the
latter half of fiscal 2010.
Company to Host Conference Call
The company will host a webcast today at 5:00 p.m. Eastern Time (4:00 p.m.
Central Time/2:00 p.m. Pacific Time) to report its fourth quarter fiscal 2009
results and provide various strategic and operational updates. The call can be
accessed at FICO's Web site at www.FICO.com (follow the instructions on the
Investor Relations page). A replay of the webcast will be available through
December 4, 2009.
The webcast will also be distributed through the Thomson StreetEvents Network to
both institutional and individual investors. Individual investors can listen to
the call at www.fulldisclosure.com, Thomson/CCBN's individual investor portal,
powered by StreetEvents. Institutional investors can access the call via
Thomson's password-protected event management site, StreetEvents
(www.streetevents.com).
About FICO
FICO (NYSE:FICO; www.FICO.com) is the leader in decision management,
transforming business by making every decision count. FICO combines trusted
advice, world-class analytics, and innovative applications to help businesses
automate, improve, and connect decisions over customer lifecycles and across the
enterprise. Clients in 80 countries work with FICO to increase customer loyalty
and profitability, reduce fraud losses, manage credit risk, meet regulatory and
competitive demands, and rapidly build market share. FICO also helps millions of
individuals manage their credit health through its consumer website,
www.myFICO.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in
this news release that relate to FICO or its business are forward-looking
statements within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially, including the success of the Company`s Decision Management strategy
and reengineering plan, the maintenance of its existing relationships and
ability to create new relationships with customers and key alliance partners,
its ability to continue to develop new and enhanced products and services, its
ability to recruit and retain key technical and managerial personnel,
competition, regulatory changes applicable to the use of consumer credit and
other data, the failure to realize the anticipated benefits of any acquisitions,
continuing material adverse developments in global economic conditions, and
other risks described from time to time in FICO`s SEC reports, including its
Annual Report on Form 10-K for the year ended September 30, 2008, and its last
quarterly report on Form 10-Q for the period ended June 30, 2009. If any of
these risks or uncertainties materializes, FICO`s results could differ
materially from its expectations. FICO disclaims any intent or obligation to
update these forward-looking statements.
FICO, Strategy Machine, and Blaze Advisor are all trademarks or registered
trademarks of Fair Isaac Corporation in the United States and in other
countries.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters and Years Ended September 30, 2009 and 2008
(In thousands, except per share data)
(Unaudited)
Quarter Ended Year Ended
September 30, September 30,
2009 2008 2009 2008
Revenues $ 151,922 $ 178,187 $ 630,735 $ 744,842
Operating expenses:
Cost of revenues 45,793 66,290 206,448 274,917
Research and development 18,217 18,884 73,626 77,794
Selling, general and administrative 51,800 57,781 209,319 245,639
Amortization of intangible assets 3,269 3,562 12,891 14,043
Restructuring - 2,311 8,711 10,166
Loss on sale of product line assets - - 2,993 -
Total operating expenses 119,079 148,828 513,988 622,559
Operating income 32,843 29,359 116,747 122,283
Other expense, net (4,893 ) (3,864 ) (19,177 ) (9,288 )
Income from continuing operations before income taxes 27,950 25,495 97,570 112,995
Provision for income taxes 10,842 1,717 32,105 31,809
Income from continuing operations 17,108 23,778 65,465 81,186
Gain (loss) from discontinued operations - - (363 ) 2,766
Net income $ 17,108 $ 23,778 $ 65,102 $ 83,952
Basic earnings (loss) per share:
Continuing operations $ 0.35 $ 0.49 $ 1.35 $ 1.66
Discontinued operations - - (0.01 ) 0.06
Total $ 0.35 $ 0.49 $ 1.34 $ 1.72
Diluted earnings (loss) per share:
Continuing operations $ 0.35 $ 0.49 $ 1.34 $ 1.64
Discontinued operations - - (0.01 ) 0.06
Total $ 0.35 $ 0.49 $ 1.33 $ 1.70
Shares used in computing earnings per share:
Basic 48,513 48,431 48,658 48,940
Diluted 48,772 48,596 48,776 49,373
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2009 and 2008
(In thousands)
(Unaudited)
September 30, September 30,
2009 2008
ASSETS:
Current assets:
Cash and cash equivalents $ 178,157 $ 129,678
Marketable securities 139,673 57,049
Accounts receivable, net 101,742 141,571
Prepaid expenses and other current assets 22,986 23,404
Total current assets 442,558 351,702
Marketable securities and investments 72,445 84,475
Property and equipment, net 34,340 46,360
Goodwill and intangible assets, net 705,895 738,550
Other noncurrent assets 48,650 54,166
$ 1,303,888 $ 1,275,253
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and other accrued liabilities $ 46,776 $ 54,837
Accrued compensation and employee benefits 28,139 29,551
Deferred revenue 39,673 38,243
Total current liabilities 114,588 122,631
Revolving line of credit 295,000 295,000
Senior notes 275,000 275,000
Other noncurrent liabilities 19,031 20,681
Total liabilities 703,619 713,312
Stockholders` equity 600,269 561,941
$ 1,303,888 $ 1,275,253
FAIR ISAAC CORPORATION
REVENUES BY SEGMENT
For the Quarters and Years Ended September 30, 2009 and 2008
(In thousands)
(Unaudited)
Quarter Ended Year Ended
September 30, September 30,
2009 2008 2009 2008
Strategy machine solutions $ 82,879 $ 94,469 $ 338,753 $ 388,108
Scoring solutions 31,824 37,260 131,621 156,816
Professional services 24,986 33,219 111,174 147,864
Analytic software tools 12,233 13,239 49,187 52,054
Total revenues $ 151,922 $ 178,187 $ 630,735 $ 744,842
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended September 30, 2009 and 2008
(In thousands)
(Unaudited)
Year Ended
September 30,
2009 2008
Cash flows from operating activities:
Net income $ 65,102 $ 83,952
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 38,419 39,494
Share-based compensation 19,935 27,981
Changes in operating assets and liabilities, net of acquisition
and disposition effects 25,426 24,447
Other, net 2,751 (16,724 )
Net cash provided by operating activities 151,633 159,150
Cash flows from investing activities:
Purchases of property and equipment (13,958 ) (22,780 )
Cash paid for acquisition, net of cash acquired - (33,336 )
Cash proceeds from sale of product line assets 4,000 -
Cash proceeds from sale of business unit - 15,581
Net activity from marketable securities (73,289 ) 7,889
Other, net 1,300 1,527
Net cash used in investing activities (81,947 ) (31,119 )
Cash flows from financing activities:
Net increase on revolving line of credit - 125,000
Payments for the repurchases of senior convertible notes - (390,067 )
Proceeds from issuance of Senior Notes - 275,000
Proceeds from issuances of common stock 3,289 19,786
Repurchases of common stock (18,500 ) (116,642 )
Other, net (3,607 ) (4,032 )
Net cash used in financing activities (18,818 ) (90,955 )
Effect of exchange rate changes on cash (2,389 ) (2,682 )
Increase in cash and cash equivalents 48,479 34,394
Cash and cash equivalents, beginning of period 129,678 95,284
Cash and cash equivalents, end of period $ 178,157 $ 129,678
FICO
Investor Relations
Michael Pung, 800-213-5542
investor@fico.com
or
Media Relations
Steve Astle, 415-446-6204
stephenastle@fico.com
Copyright Business Wire 2009
